EXHIBIT 10.16

                               RSI HOLDINGS, INC.
                             STOCK OPTION AGREEMENT

Name of Optionee: Dorothy F. King
Date of Grant: June 10, 2002
Number of shares subject to Options: 10,000
Exercise price per share: $.07

Options  expire and are no longer valid on or after:  June 10,  2007,  unless an
earlier date of expiration occurs pursuant to the terms set forth below.

         The Options shall be exercisable according  to the  following  schedule
(subject to adjustment as provided below):

          3,333 Shares Beginning June 10, 2003
          3,333 Shares Beginning June 10, 2004
          3,334 Shares Beginning June 10, 2005

         An Option that becomes exercisable in whole or in part according to the
foregoing  schedule  may be  exercised  subsequently  at any  time  prior to its
scheduled expiration, subject to earlier termination as described below.

         ADDITIONAL OPTION TERMS:

         The  Options  shall not be  transferable  except by will or the laws of
descent and distribution or pursuant to a qualified  domestic relations order as
defined by the  Internal  Revenue  Code of 1986,  as amended,  or Title 1 of the
Employee Retirement Income Security Act, or the rules thereunder.

         Any  unexercised  Option shall  terminate prior to its fixed term three
months  after  the date  that  the  Optionee  ceases  to be an  employee  of RSI
Holdings,  Inc.  (the  "Company")  or a subsidiary  of the  Company,  unless the
Optionee shall (a) die while an employee of the Company,  or a subsidiary of the
Company,  or within a period of three (3) months  after the  termination  of his
employment  with the Company or a subsidiary  of the Company,  in which case his
personal   representative  or   representatives   may  exercise  the  previously
unexercised  portion of the  Options  at any time  within one (1) year after his
termination  of employment to the extent the Optionee  could have exercised such
Options as of the date of his death (but no later than the end of the fixed term
of the  Option);  (b)  terminates  his or her  employment  with the Company or a
subsidiary  of the Company by reason of having  become  permanently  and totally
disabled within the meaning of Section  22(e)(3) of the Internal Revenue Code of
1986, as amended (the "Code") (or any successor provision),  in which case he or
his personal  representative may exercise the previously  unexercised portion of
the Options at any time within one (1) year after  termination of his employment
to the extent the Optionee  could have  exercised such Options as of the date of
his becoming  permanently and totally  disabled.  In no event may the Options be
exercised after the expiration of their fixed term.

         An Option shall be deemed  exercised when the holder (a) shall indicate
the decision to do so in writing delivered to the Company, (b) shall at the same
time  tender  to the  Company  payment  in  full in cash  (or in  shares  of the
Company's  Common  Stock at the value of such shares at the time of exercise) of
the exercise  price for the shares for which the Option is exercised,  (c) shall
tender to the  Company  payment in full in cash of the amount of all federal and
state withholding or other employment taxes applicable to the taxable income, if
any, of the holder resulting from such exercise,  and (d) shall comply with such
other reasonable requirements as the Board of the Company may establish. Neither
the Optionee nor his personal  representative(s) or estate shall have any of the
rights of a shareholder  with  reference to shares  subject to an Option until a
certificate for the shares has been executed and delivered.


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         An Option may be  exercised  for any lesser  number of shares  than the
full  amount  for which it could be  exercised.  Such a partial  exercise  of an
Option  shall not affect the right to exercise  the Options from time to time in
accordance with this agreement for the remaining shares subject to the Options.

         The number and kind of shares subject to Options  hereunder  and/or the
exercise price will be  appropriately  adjusted by the Board in the event of any
change in the  outstanding  stock of the  Company  by reason of stock  dividend,
consolidation, stock split, recapitalization,  reorganization,  merger, split-up
or the like.  Such adjustment  shall be designed to preserve,  but not increase,
the  benefits  to the  Optionee.  The  determinations  of the  Board  as to what
adjustments shall be made, and the extent thereof,  shall be final,  binding and
conclusive.

         No  certificate(s)  for shares  shall be  executed  or  delivered  upon
exercise of an Option until the Company shall have taken such action, if any, as
is then required to comply with the provisions of the Securities Act of 1933, as
amended (the "Securities Act"), the Securities  Exchange Act of 1934, as amended
(the "Exchange Act"), the South Carolina Uniform Securities Act, as amended, any
other  applicable  state blue sky law(s) and the requirements of any exchange on
which the Company's Common Stock may, at the time, be listed.  BY SIGNING BELOW,
THE OPTIONEE STATES THAT HE UNDERSTANDS THAT THE SHARES UNDERLYING THESE OPTIONS
HAVE NOT BEEN  REGISTERED  WITH THE  SECURITIES  AND EXCHANGE  COMMISSION OR ANY
STATE SECURITIES  COMMISSION AND THAT, EVEN AFTER EXERCISE,  THEY CANNOT BE SOLD
BY OPTIONEE WITHOUT  REGISTRATION UNDER APPLICABLE  SECURITIES LAWS OR EXEMPTION
THEREFROM. THE OPTIONEE ALSO REPRESENTS TO THE COMPANY THAT HE UNDERSTANDS THAT,
IF HE  INTENDS TO RELY UPON RULE 144  PROMULGATED  UNDER THE  SECURITIES  ACT IN
CONNECTION WITH THE SELL OF ANY SECURITIES  ACQUIRED BY HIM UPON THE EXERCISE OF
THE OPTIONS, UNDER CURRENT REGULATIONS HE MUST HOLD THE SECURITIES ACQUIRED FROM
THE  EXERCISE OF THE OPTIONS  FOR A MINIMUM OF ONE YEAR AFTER  EXERCISE.  In the
case of the exercise of an Option by a person or estate  acquiring  the right to
exercise the Options by bequest or inheritance, the Board may require reasonable
evidence as to the  ownership of the Options and may require  such  consents and
releases of taxing authorities as it may deem advisable.

         This  agreement  does not in any way confer any right to  continue as a
director of the Company.

         By the Optionee's and the Company's  signatures below, the Optionee and
the Company agree that these Options are granted under and governed by the terms
and conditions of this agreement.

                                   RSI HOLDINGS, INC.

                                   /s/ Buck A. Mickel
                                   ---------------------------------
                                   Buck A. Mickel
                                   President and CEO

WITNESS:
Mary W. Murphy


                                   OPTIONEE:

                                   /s/ Dorothy F. King
                                   ----------------------------------
                                   Dorothy F. King